We provide a new approach to the analysis of the optimal joint inventory and transshipment control with uncertain capacities by employing the concept of Lmusic natural sign-convexity. In this approach, we use variable transformation techniques and apply two recent results to establish the Lmusic natural sign-concavity of the profit-to-go functions, which significantly simplifies the analysis in the existing literature. Some variations of the basic model can also be analyzed using our approach with minor modifications.
- Dynamic programming
- Inventory control
- Uncertain capacity
ASJC Scopus subject areas
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics